Top reasons for Axmouth and Branscombe lease extension

Top reasons for lease extension now:

Increase your lease and increase your Axmouth and Branscombe property value

Axmouth and Branscombe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Axmouth and Branscombe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Axmouth and Branscombe you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

Axmouth and Branscombe property with a lease extension is almost the same value as a freehold

Leasehold properties in Axmouth and Branscombe with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not finance a property on a short lease

Banks and building societies are really restricting their approach as regards to properties in Axmouth and Branscombe with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus limiting the number of potential purchasers.

Get in touch with one of our Axmouth and Branscombe lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Axmouth and Branscombe,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Axmouth and Branscombe valuers.

Axmouth and Branscombe Lease Extension Example Cases:

Katie, Axmouth and Branscombe, Devon,

Off the back of lengthy correspondence with the freeholder of her basement flat in Axmouth and Branscombe, Katie initiated the lease extension process as the 80 year deadline was quickly advancing. The legal work completed in June 2014. The freeholder’s costs were negotiated to approximately 500 pounds.

Axmouth and Branscombe case:

Mr J Laurent purchased a purpose-built apartment in Axmouth and Branscombe in October 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Axmouth and Branscombe with a long lease were valued around £206,200. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 18 November 2082. Considering the 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.

Axmouth and Branscombe case:

Last Autumn we were approach by Ms C Leroy , who took over the lease of a one bedroom apartment in Axmouth and Branscombe in February 2001. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Axmouth and Branscombe with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 18 April 2102. Considering the 76 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.